InsightandCommentaryontheLawofLimitedLiabilityCompanies

Tag: creditors

The Colorado LLC Act prohibits an insolvent LLC from making a distribution to a member. Insolvency is defined as the LLC’s liabilities exceeding its assets, with minor exceptions. Colo. Rev. Stat. § 7-80-606. The Act also mandates that a member who receives a distribution and who knows at the time that the LLC is insolvent … Continue Reading

During the past two months I have been on an extended vacation – very nice. Thanks to my colleagues Janet Jacobs and John Laney for guest-authoring posts, here and here. Last week the Delaware Supreme Court ruled on the appeal of CML V, LLC v. Bax, in which the Court of Chancery held last year … Continue Reading

The Colorado Court of Appeals held last month that creditors as a group have standing to sue members of an LLC who receive distributions knowing that the distributions were made when the LLC was insolvent. Colborne Corp. v. Weinstein, No. 09CA0724, 2010 Colo. App. LEXIS 58 (Colo. App. Jan. 21, 2010). The … Continue Reading

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Limited liability companies (LLCs) have become the most frequently chosen type of entity for new business formations nationwide, and LLC law is dynamic and still developing. Since 2009 LLC Law Monitor’s mission has been to keep lawyers, accountants, financiers, and business executives up to date on new court decisions and state and federal legislation that significantly impact LLC law.

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Stoel Rives LLP is a U.S. law firm, with a full suite of transactional and litigation solutions for U.S. and international clients. Established in 1907, the firm has nearly 400 attorneys operating out of 11 offices in seven states and the District of Columbia. Representative clients include financial institutions, public and private utilities, energy and renewable energy companies, developers, manufacturers, retailers, hospitals, universities, agribusinesses, software companies, food and beverage companies, charitable foundations, telecommunications and forestry companies, among others. We represent businesses at all stages of growth, from start-ups to Fortune 500 companies.